Hooked on Dial-up: Consumer ISP Trends and Market Share

The consumer Internet market has seen rapid growth over the last 5 years, however it is beginning to slow. There are only a finite number of households that will continue to come online over the next 5 years.

Households that are online still tend to be younger, better educated, and have a higher income than those households that don't have Internet access. No matter the demographics of the online household, they most likely will still be using dial-up access in the year 2005. Cahners In-Stat forecasts that by the year 2005 dial-up would still remain the dominant form of Internet access.

This report examines the consumer ISP market. It forecasts the percent of homes with access and how they will be accessing the Internet through the year 2005. This report also gives market share for the consumer ISPs and examines the consumers' relationship with their service provider.

Executive Summary

Methodology

The Online Home Market

Demographics of the Online and Non-Online Home

Attitudes of the Internet-Resistant

How Consumers Access the Internet

Online Activities

Consumers and Their ISPs

How Consumers Select Their ISP

The Churning Consumer

Consumer ISP Market Share

Conclusion

List of Tables

Table 1. Percentage of U.S. Homes Accessing the Internet 2000-2005

Table 2. Online Activity and its Offline Equivalent

Table 3. Market Share for Primary ISP in the Home at End of 2000

List of Figures

Figure 1. Total U.S. Household Population Plans For Internet Access Over the next 12 Months

Figure 2. Non-online Households Expectations for Going Online During the Next 12 Months

Figure 3. Education and Internet Access

Figure 4. Age and Internet Access

Figure 5. Household Income and Internet Access

Figure 6. Primary Reason for Not Getting Internet Access in the Home

Figure 7. Primary Internet Access Technology in the Online Household, 2000-2005

Figure 8. Percentage of All U.S. Homes By Their Primary Internet Access Technology, 2000-2005

Figure 9. Primary Online Activity

Figure 10. Top 3 Uses for the Internet

Figure 11. Average Weekly Hours Spent Online

Figure 12. Average Weekly Hours Spent Online, Dial-up Access Versus Broadband Access

Figure 13. Primary Reason Consumers Chose Their ISP

Figure 14. Likelihood of Changing ISP in the Next 12 Months

Figure 15. Primary Reason Consumers Give for Changing ISP

Figure 16. Average Monthly Fee for Consumer Internet Access